Twintec Ltd v GSE Building and Civil Engineering Ltd

Twintec Ltd v GSE Building and Civil Engineering Ltd

A binding contract was formed between Twintec and GSE at the latest on 13 August 2001, when GSE accepted Twintec’s modified offer for a fixed price, lump sum, all risks contract for £637,897.46, as evidenced by the meeting on 2 August 2001 and GSE’s letter of 13 August 2001. All essential terms were agreed, and the description of the letter as a letter of intent did not prevent contract formation.

Parties
Claimant: Twintec Limited; Defendant: GSE Building and Civil Engineering Limited
Jurisdiction
England and Wales
Judgment Date
24 March 2003
Procedural Posture
Civil (contract/construction) / Trial of Liability Issues Only
Outcome
Liability found for the claimant (Twintec).
Legal Topics
Formation of Contract, Letters of Intent, Repudiation, Quantum Meruit
Contract Law Construction Law Formation of Contract Letters of Intent Repudiation Quantum Meruit

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Parties

Twintec Limited

Claimant

GSE Building and Civil Engineering Limited

Defendant

Procedural Posture

Civil (contract/construction) / Trial of Liability Issues Only

Legal Issues

  1. 1 Whether a binding contract was formed between Twintec and GSE in August 2001
  2. 2 Whether GSE repudiated the contract with Twintec
  3. 3 Whether Twintec is entitled to quantum meruit if no contract was formed

Ratio Decidendi

A binding contract was formed between Twintec and GSE at the latest on 13 August 2001, when GSE accepted Twintec’s modified offer for a fixed price, lump sum, all risks contract for £637,897.46, as evidenced by the meeting on 2 August 2001 and GSE’s letter of 13 August 2001. All essential terms were agreed, and the description of the letter as a letter of intent did not prevent contract formation.

Court Disposition

Liability found for the claimant (Twintec).

Orders

  • Declaration that a binding contract was formed between Twintec and GSE on or about 13 August 2001 for the external slab work at the B & Q site, Belvedere, for £637,897.46 on a fixed price, lump sum, all risks basis.
  • If no contract had been found, GSE’s letter of 13 August 2001 would have entitled Twintec to a quantum meruit or reasonable sum for works carried out and costs incurred.